RBI has asked banks for higher provisions (50% of the loan amount) in the cases referred to NCLT. What is NCLT?
The National Company Law Tribunal (NCLT) is a quasi-judicial body that adjudicates issues relating to companies in India. The NCLT was established by GOI under the Companies Act 2013 and was constituted on 1 June 2016. The NCLT has the power under the Companies Act to adjudicate proceedings: 1.Initiated before the Company Law Board under the previous act (the Companies Act 1956); 2.Pending before the Board for Industrial and Financial Reconstruction (BIFR), including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985; 3.Pending before the Appellate Authority for Industrial and Financial Reconstruction; and 4.Pertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act. Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal.
